UK Economy 'Shrank More Than Estimated' Between January And March, In Biggest Fall In 40 Years

According to the ONS, the economy fell by 2.2% – the largest drop since 1979.
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The UK economy contracted by more than first thought between January and March, experts have said.

The Office for National Statistics said the economy actually dropped 2.2% – the biggest fall since 1979. The drop was 0.2% greater than statisticians previously thought.

There was a 2.3% drop in output in the service industry, the ONS said, while construction fell by 1.7% and manufacturing by 1.1%.

GDP fell by a revised 2.2% in Q1 (Jan to Mar) 2020, with services (-2.3%), manufacturing (-1.1%) and construction (-1.7%) all falling significantly https://t.co/lQYvPEx0zN pic.twitter.com/T9WQgJjIiH

— Office for National Statistics (ONS) (@ONS) June 30, 2020

Jonathan Athow, deputy national statistician at the ONS, said: “Our more detailed picture of the economy in the first quarter showed GDP shrank a little more than first estimated.

“This is now the largest quarterly fall since 1979.

“Information from government showed health activities declined more than we previously showed.

“All main sectors of the economy shrank significantly in March as the effects of the pandemic hit.

“The sharp fall in consumer spending at the end of March led to a notable increase in households’ savings.”

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